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    The relationship between return and risk has long been a popular topic for research. Investors have been seeking financial models that quantify risk and use it to estimate the expected return on equity. The Fama French five-factor model, improved from the Fama French three-factor model, is one of the most classic models (Fama and French, 2015). In this post, we will discuss this model and develop a stock-picking strategy based on it.
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